Balancing Profit and Planet: Introducing the CARE Framework for Firms' Ethical Climate Strategy

Abstract

Climate change presents an urgent ethical and strategic challenge for contemporary business, demanding responses that are both morally grounded and competitively viable. This paper proposes the CARE framework, Comprehend, Align, Refine, and Evaluate, a structured model for ethical climate strategy rooted in resource-advantage (R-A) theory and foundational ethical principles. Drawing on a systematic literature review and illustrative case analysis across firms such as Tesla, GM, Toyota, and Interface, the framework integrates normative reasoning with strategic action. CARE guides firms from ethically attuned market understanding to resource mobilization, innovation refinement, and long-term evaluation of competitive positioning. Theoretically, this study extends R-A theory into the sustainability domain, offering a rare synthesis of stakeholder ethics, virtue-based decision-making, and strategic management. Practically, it provides decision criteria, diagnostic tools, and implementation pathways for firms and policymakers seeking to align climate responsibility with enduring market advantage. In doing so, the CARE framework advances both scholarly discourse and managerial practice in the pursuit of ethical business transformation.